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Home Values and Ownership in Zip Code 63664: Potosi's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 63664, encompassing Potosi in Missouri, presents an intriguing case study of housing market dynamics in a small urban area. This zip code has experienced significant fluctuations in homeownership rates and substantial growth in average home prices over the past decade, while average rent prices have shown more modest increases.
The homeownership rate in zip code 63664 has fluctuated between 70% and 77% from 2013 to 2022. In 2013, the homeownership rate stood at 70%, rising to a peak of 77% in 2015 and 2016. By 2022, it settled at 75%. During this same period, average home prices in the area saw remarkable growth. In 2013, the average home price was $60,316. By 2022, it had increased to $164,423, representing a substantial 172.6% increase over nine years.
Federal interest rates have played a role in homeownership trends in zip code 63664. The period from 2013 to 2016, when homeownership rates were at their highest (77%), coincided with historically low interest rates ranging from 0.09% to 0.40%. As interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, we observed a slight decline in homeownership rates to 75%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 63664 have inversely mirrored homeownership rates, ranging from 23% to 29% between 2013 and 2022. The average rent prices have shown a moderate upward trend during this period. In 2013, the average rent was $511 per month. By 2022, it had increased to $554, representing an 8.4% increase over nine years. It's worth noting that the population of the zip code grew from 7,514 in 2013 to 7,869 in 2022, potentially contributing to the demand for rental properties and the slight increase in rent prices.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 63664. The average home price reached $168,236 in 2023 and further increased to $172,169 in 2024. This represents a 4.7% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the area.
Looking ahead, based on the observed trends, we can forecast the following for zip code 63664 over the next five years: Average home prices are likely to continue their upward trajectory, potentially reaching around $190,000 to $200,000 by 2029. Average rent prices may also continue to rise, albeit at a slower pace, potentially reaching $600 to $625 per month by 2029. However, these projections could be influenced by various factors, including economic conditions, local development, and broader housing market trends.
In summary, zip code 63664 has demonstrated strong growth in average home prices, stable homeownership rates, and moderate increases in average rent prices over the past decade. The area has shown resilience in maintaining relatively high homeownership rates despite rising home prices and recent increases in interest rates. The continued rise in both average home prices and interest rates in 2023 and 2024 suggests a robust housing market in this zip code, with potential for further growth in the coming years.
